Shares of Apple Inc (NASDAQ: AAPL ) have held up well relative to the broader market in 2022.
CNBC’s ‘Fast Money Halftime Report’ panel discussed the tech giant’s valuation on Tuesday, with shares trading flat ahead of the company’s ‘Far Out’ event this week.
“[Apple] is a good company, but it doesn’t have a convincing valuation of 20 times future estimates, and I don’t think these are groundbreaking products that will be announced this week,” Stephanie Link of Hightower Advisors said Tuesday on the show. .
What You Should Know Link said he has been paying close attention to Apple’s lead times, which have shown gradual improvement, pointing to easing supply chain constraints.
As a result, his main concern has shifted to demand, he said: “I think it will be strong, but is it still that strong? I’m sure they benefited from the lockdown.”
Link told CNBC that Apple is “very underweight” at current levels, but maintains exposure through Broadcom Inc (NASDAQ:NASDAQ: AVGO ) and Berkshire Hathaway Inc (NYSE: BRKa ) (NYSE:BRK-A) ( NYSE:BRK-B).
Joe Terranova of Virtus Investment Partners responded to Link’s concerns about demand, noting that he is still focused on the supply side.
“I think consumers will be looking for these products, and now it comes down to whether Apple can keep inventory,” he said.
While acknowledging that Apple’s valuation is “a little rich,” he believes the fundamentals justify the premium, he said.
Terranova told CNBC that he recently increased his position in Apple, making it the largest position in his personal portfolio.
Following Link and Terranova’s comments, Josh Brown of Ritholtz Wealth Management weighed in and questioned whether the valuation was worth the talk.
“Apple has a stability of cash flow and a continuity of … shareholder support … that no other company has. Arguably that would give it a higher rating. The problem with that is if you buy today at that premium valuation, then you’re essentially not in a position to make as much,” Brown said.
Investors are likely to continue to value Apple’s stability amid current market conditions, he said, adding that he expects the stock to continue trading at a higher valuation.
“Apple has a lot of levers to pull. The App Store is the biggest business in the history of planet Earth, quite frankly: the highest margins, the fastest growth, the greatest dominance, that’s not going to change in the next six months, regardless of what happens in the US economy. USA,” Brown stated.
AAPL Apple price movement has a 52-week high of $182.94 and a 52-week low of $129.04.
According to data from Benzinga Pro, the shares were down 0.94% at $154.34 as of the latest revision.
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